Which of the following is the most accurate statement about a production possibilities curve?
a. An economy can produce at any point inside or outside its production possibilities curve
b. An economy can produce only on its production possibilities curve.
c. An economy can produce at any point on or inside its production possibilities curve, but not outside the curve.
d. An economy can produce at any point inside its production possibilities curve, but not on or outside the curve.
c
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Traffic congestion is an example of
A) a shortage of roadway space. B) a surplus of automobiles. C) a surplus of drivers. D) a surplus of people.
The key distinguishing characteristic of an oligopoly is the:
A) presence of long-run economic profits. B) fact that in all cases firms produce a standardized product. C) mutual interdependence of the firms in the market. D) near total absence of advertising.
Table 13.2ABC Bank Balance SheetAssetsLiabilitiesTotal reserves$80,000Transactions accounts$200,000Loans120,000??Refer to Table 13.2. If ABC Bank has a required reserve ratio of 15 percent, it can legally make a onetime maximum loan of
A. $80,000. B. $30,000. C. $40,000. D. $50,000.
Limit pricing occurs when a firm sets price:
A. equal to marginal cost. B. equal to average cost. C. at different amounts for different groups of consumers. D. so low that other firms are prevented from entering the market.